SENATE AMENDED PRIOR PRINTER'S NOS. 254, 1260 PRINTER'S NO. 4000
No. 221 Session of 2007
INTRODUCED BY TANGRETTI, FRANKEL, BUXTON, BARRAR, BELFANTI, BENNINGTON, BEYER, ARGALL, CALTAGIRONE, CAPPELLI, CLYMER, COHEN, DePASQUALE, FABRIZIO, FLECK, FREEMAN, GEORGE, GERGELY, GINGRICH, GOODMAN, HARHAI, HENNESSEY, HERSHEY, HUTCHINSON, JOSEPHS, KILLION, KOTIK, KULA, LEVDANSKY, MAHONEY, MANN, MARKOSEK, MELIO, MILLARD, MUNDY, MUSTIO, NAILOR, O'NEILL, PALLONE, PAYNE, PETRONE, RAMALEY, RAPP, RAYMOND, READSHAW, ROSS, SAINATO, SAMUELSON, SANTONI, SAYLOR, SCAVELLO, SIPTROTH, SOLOBAY, STERN, STURLA, SURRA, WALKO, WANSACZ, WATSON, WOJNAROSKI, YUDICHAK, LEACH, PETRARCA, GEIST, BIANCUCCI, REICHLEY, RUBLEY, HESS, PETRI, BOYD, SCHRODER, BROOKS, WHEATLEY, BASTIAN, DENLINGER, MURT, MCILVAINE SMITH, HARPER AND COSTA, FEBRUARY 5, 2007
SENATOR EARLL, COMMUNITY, ECONOMIC AND RECREATIONAL DEVELOPMENT, IN SENATE, RE-REPORTED AS AMENDED, JUNE 18, 2008
AN ACT 1 Providing for the establishment of the Historic Preservation 2 Incentive Grant Program for historic commercial and <-- 3 residential sites, FOR GRANTS AND FOR TAX CREDITS. <-- 4 The General Assembly of the Commonwealth of Pennsylvania 5 hereby enacts as follows: 6 CHAPTER 1 <-- 7 PRELIMINARY PROVISIONS 8 Section 1 101. Short title. <-- 9 This act shall be known and may be cited as the Historic 10 Preservation Incentive Grant Act. <-- 11 Section 2 102. Definitions. <-- 12 The following words and phrases when used in this act shall
1 have the meanings given to them in this section unless the 2 context clearly indicates otherwise: 3 "Applicant." A commercial applicant or a residential <-- 4 applicant. 5 "Commercial applicant." Any natural person, corporation, 6 foundation, organization, business trust, estate, limited 7 liability company, licensed corporation, trust, partnership, 8 limited liability partnership, association or any other form of 9 legal business entity that owns an eligible commercial property. 10 "Commission." The Pennsylvania Historical and Museum 11 Commission. 12 "Department." The Department of Community and Economic <-- 13 Development of the Commonwealth. 14 "Eligible building improvements." Exterior rehabilitation or 15 restoration work performed on an eligible commercial property or 16 an eligible residential property, including work involving 17 windows, consistent with the Standards for Rehabilitation of the 18 Secretary of the Interior. 19 "Eligible commercial property." A building used or zoned to <-- 20 be used for income producing purposes which is listed on the 21 National Register of Historic Places, is a contributing property 22 in a National Register historic district or is located in a 23 local government historic district. The term includes a building 24 used or zoned to be used for commercial purposes which is also 25 used for residential purposes. The term also includes a for-sale 26 condominium project. 27 "Eligible property." An eligible commercial property or an 28 eligible residential property. 29 "Eligible residential property." A single-family dwelling or 30 a building which: 20070H0221B4000 - 2 -
1 (1) is a single family dwelling used as the owner's 2 principal residence or is a building that is divided into no 3 more than four residential units, one of which is used as the 4 owner's principal residence; 5 (2) is owned by one or more natural persons; and 6 (3) either: 7 (i) is listed on the National Register of Historic 8 Places or is a contributing property in a National 9 Register historic district; or 10 (ii) is located in a local government historic 11 district. 12 "Elm Street area." A geographically defined portion of a 13 municipality designated as an Elm Street area by the Department 14 of Community and Economic Development in accordance with the 15 terms and conditions of the act of February 9, 2004 (P.L.61, 16 No.7), known as the Elm Street Program Act. The term includes an 17 area which has exited the official program but still has a 18 program functioning to revitalize the designated areas pursuant 19 to the department's program guidelines. 20 "Enterprise zone." A geographic area designated by the 21 Department of Community and Economic Development as an 22 enterprise zone. The term includes an area which has exited the 23 official program but still has a program functioning to 24 revitalize the designated areas pursuant to the department's 25 program guidelines. 26 "Historic district." A local government historic district or 27 an area in this Commonwealth which has been designated as a 28 historic district under the National Historic Preservation Act 29 (Public Law 89-665, 80 Stat. 915). 30 "Historic structure." A building listed in the National 20070H0221B4000 - 3 -
1 Register of Historic Places, either individually or as a 2 contributing building within a historic district. 3 "Local government historic district." A historic district 4 designated by any of the following: 5 (1) Section 2 of the act of June 13, 1961 (P.L.282, 6 No.167), entitled "An act authorizing counties, cities, 7 boroughs, incorporated towns and townships to create historic 8 districts within their geographic boundaries; providing for 9 the appointment of Boards of Historical Architectural Review; 10 empowering governing bodies of political subdivisions to 11 protect the distinctive historical character of these 12 districts and to regulate the erection, reconstruction, 13 alteration, restoration, demolition or razing of buildings 14 within the historic districts." 15 (2) The Historic Preservation Ordinance, Section 14- 16 2007, of the Philadelphia City Code. 17 (3) Title 11 of the Pittsburgh City Code, Chapter 1, 18 Section 3, as amended by City Council on July 22, 1997. 19 (4) The City of Scranton under the City of Scranton 20 Commission for Architectural and Urban Design Review 21 ordinance. 22 "Main Street community." A geographic area designated as a 23 Main Street community by the Department of Community and 24 Economic Development. The term includes an area that has exited 25 the official program but still has a program functioning to 26 revitalize the designated areas pursuant to the department's 27 program guidelines. 28 "National Register." The National Register of Historic 29 Places established under section 101 of the National Historic 30 Preservation Act (Public Law 89-665, 16 U.S.C. § 470a). 20070H0221B4000 - 4 -
1 "Residential applicant." One or more natural persons who own 2 an eligible residential property. 3 "Standards." The Secretary of the Interior Standards for the 4 Treatment of Historic Properties, excluding reconstruction, set 5 forth at 36 CFR 67.7 (relating to Standards for Rehabilitation). 6 CHAPTER 3 <-- 7 GRANTS 8 SECTION 301. DEFINITIONS. 9 THE FOLLOWING WORDS AND PHRASES WHEN USED IN THIS CHAPTER 10 SHALL HAVE THE MEANINGS GIVEN TO THEM IN THIS SECTION UNLESS THE 11 CONTEXT CLEARLY INDICATES OTHERWISE: 12 "DEPARTMENT." THE DEPARTMENT OF COMMUNITY AND ECONOMIC 13 DEVELOPMENT OF THE COMMONWEALTH. 14 Section 3 302. Historic Preservation Incentive Grant Program. <-- 15 (a) Establishment.--There is established a program in the 16 department to be known as the Historic Preservation Incentive 17 Grant Program. The program shall provide grants to owners of 18 eligible properties located within this Commonwealth that 19 undertake eligible RESIDENTIAL building improvements. <-- 20 (b) Application.--To participate in the program, an A <-- 21 RESIDENTIAL applicant must submit an application to the 22 department requesting a grant for the reimbursement of costs 23 associated with eligible building improvements to an eligible 24 RESIDENTIAL property owned by the RESIDENTIAL applicant. The <-- 25 application must be submitted on a form developed by the 26 department in consultation with the commission and must include 27 all of the following: 28 (1) The name and address of the RESIDENTIAL applicant. <-- 29 (2) The location of the property. 30 (3) Proof of ownership of the property by the 20070H0221B4000 - 5 -
1 RESIDENTIAL applicant. The RESIDENTIAL applicant may satisfy <--
2 this requirement by providing evidence satisfactory to the
3 department that the RESIDENTIAL applicant will own the <--
4 property at some point in time following submission of the
5 application and has sufficient control of the property at the
6 time of submission to perform the work described in the
7 application.
8 (4) A description of the property providing sufficient
9 information to establish that the property meets the criteria
10 for either an eligible commercial property or an eligible <--
11 residential property, including information specified in the
12 commission's guidelines.
13 (5) A detailed description of the proposed work to be
14 performed, including plans, drawings and specifications as
15 appropriate.
16 (6) A detailed estimate of the cost of the work to be
17 performed.
18 (7) Proof that the RESIDENTIAL applicant is current with <--
19 respect to the payment of all real estate taxes assessed
20 against the property or evidence that the RESIDENTIAL <--
21 applicant is contesting the taxes in good faith and has set
22 aside sums to cover any tax liability in the event the
23 contest fails.
24 (8) Evidence of the source of matching funds to be
25 utilized for the project. If the source of matching funds is
26 a loan from a financial institution, the RESIDENTIAL <--
27 applicant must provide a copy of the loan application and
28 commitment or other evidence satisfactory to the department
29 of the RESIDENTIAL applicant's ability to obtain the <--
30 necessary financing.
20070H0221B4000 - 6 -
1 (9) Any other information required by the department or 2 the commission. 3 (c) Review and recommendation by commission.--The department 4 shall forward the application to the commission for review. If 5 the commission determines that the property qualifies as an 6 eligible RESIDENTIAL property and that the proposed improvements <-- 7 would qualify as eligible building improvements, then the 8 commission may recommend approval of the property for the 9 program and shall notify the department of its recommendation 10 within 45 days following receipt of a completed application by 11 the commission. 12 (d) Award of grant by department.--Upon receipt of the 13 commission's recommendation for approval as provided in 14 subsection (c), the department may award the RESIDENTIAL <-- 15 applicant a grant and shall notify the RESIDENTIAL applicant and <-- 16 the commission of its action. 17 (e) Certification and disbursement.-- 18 (1) Following completion of the work, the RESIDENTIAL <-- 19 applicant shall file a certification with the commission 20 stating that the work has been completed. The certification 21 shall be accompanied by photographs showing the completed 22 project, evidence of the actual expenditures made by the 23 RESIDENTIAL applicant and evidence, in the form of a letter <-- 24 or letters from local code enforcement officials, that the 25 property, as improved, complies with all local building, 26 fire, safety and health codes. 27 (2) The commission shall complete its review of the 28 certification within 90 days of receipt of the certification 29 by the commission. The commission may request additional 30 information and conduct a site inspection as it deems 20070H0221B4000 - 7 -
1 necessary to determine compliance with the requirements of 2 the program established by this act CHAPTER. <-- 3 (3) If the commission is satisfied with the 4 certification submitted, it shall notify the department of 5 the approved eligible building improvements. The department 6 shall calculate the amount of the grant and disburse the 7 grant funds to the RESIDENTIAL applicant. <-- 8 (f) Agreement.--The department is not required to enter into 9 a grant agreement with an A RESIDENTIAL applicant prior to <-- 10 awarding and disbursing a grant. 11 (g) Special rules relating to eligible residential <-- 12 properties.--An application for a grant for eligible building 13 improvements for an eligible residential property must include <-- 14 one of the following statements from the RESIDENTIAL applicant: <-- 15 (1) That the RESIDENTIAL applicant has owned the <-- 16 eligible residential property for at least five years prior 17 to the date of submission of the application. 18 (2) That the RESIDENTIAL applicant has owned the <-- 19 eligible residential property for less than five years prior 20 to the date of submission of the application but agrees to 21 continue to own the property for a total of at least five 22 years. 23 Section 4 303. Exemption from State taxes. <-- 24 Grant amounts awarded by the department for eligible 25 residential properties shall not be considered income to the 26 RESIDENTIAL applicant under section 303 of the act of March 4, <-- 27 1971 (P.L.6, No.2), known as the Tax Reform Code of 1971. 28 Section 5 304. Allocation of grant funds; limitations; <-- 29 priorities. 30 (a) Source.--Funds for this program shall be provided to the 20070H0221B4000 - 8 -
1 department from funds authorized for this purpose. 2 (b) Proration.--If the total amount of grants to be awarded 3 exceeds the amount of funds available for the program in any 4 year, the amount of grants may be prorated among the successful 5 RESIDENTIAL applicants. <-- 6 (c) Minimum.--At least 31% of the funds available in any <-- 7 year shall be reserved by the department for grants to 8 successful residential applicants. If reserved funds are more 9 than are needed to satisfy the total amount of such grants 10 awarded in any year, the department may utilize the excess funds 11 for grants to successful commercial applicants. 12 (d) (C) Limitations.-- <-- 13 (1) Subject to the other limitations set forth in this 14 subsection, a grant awarded to a successful RESIDENTIAL <-- 15 applicant shall not be more than 70% of the total amount of 16 expenditures made for eligible building improvements. 17 (2) In no event shall any grant be awarded unless: 18 (i) the RESIDENTIAL applicant is current with <-- 19 respect to all local real estate taxes assessed against 20 the RESIDENTIAL applicant's eligible RESIDENTIAL <-- 21 property; or 22 (ii) the RESIDENTIAL applicant, in good faith, is <-- 23 contesting local real estate taxes assessed against the 24 RESIDENTIAL applicant's eligible RESIDENTIAL property, <-- 25 provides the department with evidence of the contest and 26 has set aside sums to cover any tax liability in the 27 event the contest fails. 28 (3) Up to $15,000 may be awarded to a residential 29 applicant in connection with a single project., and up to <-- 30 $500,000 may be awarded to a commercial applicant in 20070H0221B4000 - 9 -
1 connection with a single project. 2 (4) In order to receive money from a grant, the 3 RESIDENTIAL applicant must complete the project being funded <-- 4 by the grant within two years of receipt of notification from 5 the department of the award. 6 (e) (D) Priorities.--Priority for the award of grants may be <-- 7 given to properties located in Elm Street areas, Main Street 8 communities, enterprise zones and in local government historic <-- 9 districts. The department shall take into account geographical 10 distribution of grants in making awards. 11 Section 6 305. Administration. <-- 12 (a) Guidelines.--The department and the commission shall 13 jointly develop guidelines for the implementation of the program 14 established by this act CHAPTER. <-- 15 (b) Expenditures.--The department may utilize up to an 16 aggregate of 3% of the funds available for the program annually, 17 not to exceed $500,000, as allocated by the Governor, for 18 expenses incurred in administering the program established by 19 this act CHAPTER AND CHAPTER 5. The department and the <-- 20 commission shall enter into an agreement for the payment to the 21 commission of a portion of sums for expenses incurred by the 22 commission. 23 Section 7 306. Repayment. <-- 24 The department, at its discretion, shall be entitled to a 25 return of all grant funds paid to the RESIDENTIAL applicant if, <-- 26 within five years following completion of the project, any of 27 the following occur: 28 (1) The owner of the eligible RESIDENTIAL property makes <-- 29 improvements to the exterior of the property which do not 30 meet the standards. 20070H0221B4000 - 10 -
1 (2) The eligible RESIDENTIAL property is removed from <--
2 the National Register, either individually or as a
3 contributing building within a historic district, whether or
4 not as a result of the owner making improvements to the
5 exterior of the property which do not meet the standards.
6 (3) The eligible residential property is transferred in
7 violation of the agreement made by the owner under the
8 provisions of section 3(g)(2) 302(G)(2), if applicable, <--
9 unless the transfer occurs as a result of the death of the
10 owner or is otherwise involuntary.
11 CHAPTER 5 <--
12 TAX CREDITS
13 SECTION 501. DEFINITIONS.
14 THE FOLLOWING WORDS AND PHRASES WHEN USED IN THIS CHAPTER
15 SHALL HAVE THE MEANINGS GIVEN TO THEM IN THIS SECTION UNLESS THE
16 CONTEXT CLEARLY INDICATES OTHERWISE:
17 "CERTIFIED HISTORIC STRUCTURE." AS DEFINED IN SECTION
18 47(C)(3) OF THE INTERNAL REVENUE CODE OF 1986 (PUBLIC LAW 99-
19 514, 26 U.S.C. § 47(C)(3)).
20 "DEPARTMENT." THE DEPARTMENT OF REVENUE OF THE COMMONWEALTH.
21 "PASS-THROUGH ENTITY." ANY OF THE FOLLOWING:
22 (1) A PARTNERSHIP, AS DEFINED IN SECTION 301(N.0) OF
23 THE ACT OF MARCH 4, 1971 (P.L.6, NO.2), KNOWN AS THE TAX
24 REFORM CODE OF 1971.
25 (2) A PENNSYLVANIA S CORPORATION AS DEFINED IN SECTION
26 301(N.1) OF THE TAX REFORM CODE OF 1971.
27 "QUALIFIED REHABILITATION EXPENDITURE." A QUALIFIED
28 REHABILITATION EXPENDITURE, AS DEFINED IN SECTION 47(C)(2) OF
29 THE INTERNAL REVENUE CODE OF 1986 (PUBLIC LAW 99-514, 26 U.S.C.
30 § 47(C)(2)), INCURRED AFTER DECEMBER 31, 2008.
20070H0221B4000 - 11 -
1 "QUALIFIED TAX LIABILITY." THE LIABILITY FOR TAXES IMPOSED 2 UNDER ARTICLE III, IV OR VI OF THE ACT OF MARCH 4, 1971 (P.L.6, 3 NO.2), KNOWN AS THE TAX REFORM CODE OF 1971. THE TERM DOES NOT 4 INCLUDE ANY TAX WITHHELD BY AN EMPLOYER FROM AN EMPLOYEE UNDER 5 ARTICLE III OF THE TAX REFORM CODE OF 1971. 6 SECTION 502. TAX CREDIT CERTIFICATE. 7 (A) APPLICATION.-- 8 (1) A COMMERCIAL APPLICANT MAY APPLY TO THE DEPARTMENT 9 OF COMMUNITY AND ECONOMIC DEVELOPMENT FOR A TAX CREDIT 10 CERTIFICATE UNDER THIS SECTION. 11 (2) THE APPLICATION MUST BE ON THE FORM REQUIRED BY THE 12 DEPARTMENT OF COMMUNITY AND ECONOMIC DEVELOPMENT. 13 (3) THE APPLICATION MUST BE FILED ON OR BEFORE FEBRUARY 14 1 FOR QUALIFIED REHABILITATION EXPENDITURES INCURRED IN THE 15 PRIOR CALENDAR YEAR. 16 (B) REVIEW, RECOMMENDATION AND APPROVAL.-- 17 (1) THE DEPARTMENT OF COMMUNITY AND ECONOMIC DEVELOPMENT 18 SHALL FORWARD THE APPLICATION TO THE COMMISSION FOR REVIEW. 19 (2) IF THE COMMISSION DETERMINES THAT THE COMMERCIAL 20 APPLICANT HAS INCURRED QUALIFIED REHABILITATION EXPENDITURES, 21 THE COMMISSION MAY RECOMMEND APPROVAL OF THE APPLICATION AND 22 SHALL NOTIFY THE DEPARTMENT OF COMMUNITY AND ECONOMIC 23 DEVELOPMENT OF ITS RECOMMENDATION WITHIN 30 DAYS FOLLOWING 24 RECEIPT OF A COMPLETED APPLICATION BY THE COMMISSION. 25 (3) UPON RECEIPT OF THE COMMISSION'S RECOMMENDATION FOR 26 APPROVAL, THE DEPARTMENT OF COMMUNITY AND ECONOMIC 27 DEVELOPMENT: 28 (I) MAY APPROVE THE APPLICATION; AND 29 (II) BY APRIL 1, SHALL NOTIFY THE COMMERCIAL 30 APPLICANT AND THE COMMISSION OF ITS ACTION. 20070H0221B4000 - 12 -
1 (4) IF THE DEPARTMENT OF COMMUNITY AND ECONOMIC 2 DEVELOPMENT APPROVES THE APPLICATION, IT SHALL ISSUE THE 3 COMMERCIAL APPLICANT A TAX CREDIT CERTIFICATION BY APRIL 1. 4 IN GRANTING TAX CREDIT CERTIFICATES, THE DEPARTMENT OF 5 COMMUNITY AND ECONOMIC DEVELOPMENT: 6 (I) SHALL GIVE PRIORITY TO PROPERTIES LOCATED IN ELM 7 STREET AREAS, ENTERPRISE ZONES, LOCAL GOVERNMENT HISTORIC 8 DISTRICTS AND MAIN STREET COMMUNITIES; 9 (II) SHALL TAKE INTO ACCOUNT THE GEOGRAPHICAL 10 DISTRIBUTION OF TAX CREDIT CERTIFICATES; AND 11 (III) SHALL NOT GRANT MORE THAN $10,000,000 IN TAX 12 CREDIT CERTIFICATES IN A SINGLE FISCAL YEAR. 13 SECTION 503. CLAIMING THE CREDIT. 14 (A) CLAIM.--UPON PRESENTING A TAX CREDIT CERTIFICATE TO THE 15 DEPARTMENT, THE COMMERCIAL APPLICANT MAY CLAIM A TAX CREDIT 16 AGAINST THE QUALIFIED TAX LIABILITY OF THE COMMERCIAL APPLICANT. 17 (B) AMOUNT AND QUALIFICATION.-- 18 (1) A COMMERCIAL APPLICANT IS ALLOWED A TAX CREDIT UNDER 19 THIS CHAPTER IN THE AMOUNT OF 25% OF A QUALIFIED 20 REHABILITATION EXPENDITURE: 21 (I) WHICH IS INCURRED IN CONNECTION WITH 22 REHABILITATION OF A CERTIFIED HISTORIC STRUCTURE LOCATED 23 IN THIS COMMONWEALTH; AND 24 (II) FOR WHICH A CREDIT IS RECEIVED UNDER SECTION 47 25 OF THE INTERNAL REVENUE CODE OF 1986 (PUBLIC LAW 99-514, 26 26 U.S.C. § 47). 27 (2) THE TAX CREDIT MAY NOT EXCEED $500,000 FOR A SINGLE 28 COMMERCIAL APPLICANT IN A SINGLE FISCAL YEAR. 29 SECTION 504. CARRYOVER, CARRYBACK AND SALE OR ASSIGNMENT OF 30 CREDIT. 20070H0221B4000 - 13 -
1 (A) GENERAL RULE.--IF THE COMMERCIAL APPLICANT CANNOT USE 2 THE ENTIRE AMOUNT OF THE TAX CREDIT FOR THE TAXABLE YEAR IN 3 WHICH THE TAX CREDIT CERTIFICATE WAS ISSUED, THEN THE EXCESS MAY 4 BE CARRIED OVER TO SUCCEEDING TAXABLE YEARS AND USED AS A CREDIT 5 AGAINST THE QUALIFIED TAX LIABILITY OF THE COMMERCIAL APPLICANT 6 FOR THOSE TAXABLE YEARS. EACH TIME THE TAX CREDIT IS CARRIED 7 OVER TO A SUCCEEDING TAXABLE YEAR, IT SHALL BE REDUCED BY THE 8 AMOUNT THAT WAS USED AS A CREDIT DURING THE IMMEDIATELY 9 PRECEDING TAXABLE YEAR. THE TAX CREDIT PROVIDED BY THIS CHAPTER 10 MAY BE CARRIED OVER AND APPLIED TO SUCCEEDING TAXABLE YEARS FOR 11 NO MORE THAN THREE TAXABLE YEARS FOLLOWING THE FIRST TAXABLE 12 YEAR FOR WHICH THE TAXPAYER WAS ENTITLED TO CLAIM THE CREDIT. 13 (B) APPLICATION.--A TAX CREDIT CERTIFICATE ISSUED BY THE 14 DEPARTMENT SHALL FIRST BE APPLIED AGAINST THE COMMERCIAL 15 APPLICANT'S QUALIFIED TAX LIABILITY FOR THE CURRENT TAXABLE YEAR 16 AS OF THE DATE ON WHICH THE TAX CREDIT CERTIFICATE WAS ISSUED 17 BEFORE THE TAX CREDIT CAN BE APPLIED AGAINST ANY TAX LIABILITY 18 UNDER SUBSECTION (A). 19 (C) NO CARRYBACK OR REFUND.--A COMMERCIAL APPLICANT IS NOT 20 ENTITLED TO CARRY BACK OR OBTAIN A REFUND OF ALL OR ANY PORTION 21 OF AN UNUSED TAX CREDIT GRANTED TO THE TAXPAYER UNDER THIS 22 CHAPTER. 23 (D) SALE OR ASSIGNMENT.-- 24 (1) A COMMERCIAL APPLICANT, UPON APPLICATION TO AND 25 APPROVAL BY THE DEPARTMENT, MAY SELL OR ASSIGN, IN WHOLE OR 26 IN PART, A TAX CREDIT GRANTED TO THE COMMERCIAL APPLICANT 27 UNDER THIS CHAPTER. 28 (2) A CREDIT MAY NOT BE SOLD OR ASSIGNED FOR A PERIOD OF 29 ONE YEAR FOLLOWING THE DATE THE TAX CERTIFICATE WAS ISSUED BY 30 THE DEPARTMENT. 20070H0221B4000 - 14 -
1 (3) BEFORE AN APPLICATION IS APPROVED, THE DEPARTMENT 2 MUST MAKE A FINDING THAT THE COMMERCIAL APPLICANT HAS FILED 3 ALL REQUIRED STATE TAX REPORTS AND RETURNS FOR ALL APPLICABLE 4 TAXABLE YEARS AND PAID ANY BALANCE OF STATE TAX DUE AS 5 DETERMINED BY ASSESSMENT OR DETERMINATION BY THE DEPARTMENT. 6 (E) PURCHASERS AND ASSIGNEES.--THE PURCHASER OR ASSIGNEE OF 7 ALL OR A PORTION OF A TAX CREDIT UNDER SUBSECTION (D) SHALL 8 IMMEDIATELY CLAIM THE CREDIT IN THE TAXABLE YEAR IN WHICH THE 9 PURCHASE OR ASSIGNMENT IS MADE. THE AMOUNT OF THE TAX CREDIT 10 THAT A PURCHASER OR ASSIGNEE MAY USE AGAINST A SINGLE QUALIFIED 11 TAX LIABILITY MAY NOT EXCEED 50% OF THAT QUALIFIED TAX LIABILITY 12 FOR THE TAXABLE YEAR. THE PURCHASER OR ASSIGNEE MAY NOT CARRY 13 FORWARD, CARRY BACK OR OBTAIN A REFUND OF OR FURTHER SELL OR 14 ASSIGN THE TAX CREDIT. THE PURCHASER OR ASSIGNEE SHALL NOTIFY 15 THE DEPARTMENT OF THE SELLER OR ASSIGNOR OF THE TAX CREDIT IN 16 COMPLIANCE WITH PROCEDURES SPECIFIED BY THE DEPARTMENT. 17 SECTION 505. PASS-THROUGH ENTITY. 18 (A) GENERAL RULE.--IF A PASS-THROUGH ENTITY HAS ANY UNUSED 19 TAX CREDIT UNDER SECTION 504(A), IT MAY ELECT IN WRITING, 20 ACCORDING TO PROCEDURES ESTABLISHED BY THE DEPARTMENT, TO 21 TRANSFER ALL OR A PORTION OF THE CREDIT TO SHAREHOLDERS, MEMBERS 22 OR PARTNERS IN PROPORTION TO THE SHARE OF THE ENTITY'S 23 DISTRIBUTIVE INCOME TO WHICH THE SHAREHOLDER, MEMBER OR PARTNER 24 IS ENTITLED. 25 (B) LIMITATION.--A PASS-THROUGH ENTITY AND A SHAREHOLDER, 26 MEMBER OR PARTNER OF A PASS-THROUGH ENTITY MAY NOT CLAIM THE 27 CREDIT UNDER SUBSECTION (A) FOR THE SAME QUALIFIED 28 REHABILITATION EXPENDITURE. 29 (C) APPLICATION.--A SHAREHOLDER, MEMBER OR PARTNER OF A 30 PASS-THROUGH ENTITY TO WHICH A CREDIT IS TRANSFERRED UNDER 20070H0221B4000 - 15 -
1 SUBSECTION (A) SHALL IMMEDIATELY CLAIM THE CREDIT IN THE TAXABLE 2 YEAR IN WHICH THE TRANSFER IS MADE. THE SHAREHOLDER, MEMBER OR 3 PARTNER MAY NOT CARRY FORWARD, CARRY BACK, OBTAIN A REFUND OF OR 4 SELL OR ASSIGN THE CREDIT. 5 SECTION 506. CANCELLATION. 6 (A) CANCELLATION OF TAX CREDIT CERTIFICATE.--THE DEPARTMENT 7 OF COMMUNITY AND ECONOMIC DEVELOPMENT MAY CANCEL A TAX 8 CERTIFICATE ISSUED UNDER SECTION 502 IF, WITHIN FIVE YEARS 9 FOLLOWING COMPLETION OF THE PROJECT, ANY OF THE FOLLOWING OCCUR: 10 (1) THE OWNER OF THE CERTIFIED HISTORIC STRUCTURE MAKES 11 IMPROVEMENTS TO THE EXTERIOR OF THE PROPERTY WHICH DO NOT 12 MEET THE STANDARDS. 13 (2) THE CERTIFIED HISTORIC STRUCTURE IS REMOVED FROM THE 14 NATIONAL REGISTER, EITHER INDIVIDUALLY OR AS A CONTRIBUTING 15 BUILDING WITHIN A HISTORIC DISTRICT, WHETHER OR NOT AS A 16 RESULT OF THE OWNER MAKING IMPROVEMENTS TO THE EXTERIOR OF 17 THE PROPERTY WHICH DO NOT MEET THE STANDARDS. 18 (B) NOTICES.--THE DEPARTMENT OF COMMUNITY AND ECONOMIC 19 DEVELOPMENT SHALL NOTIFY THE COMMERCIAL APPLICANT TO WHOM THE 20 TAX CREDIT WAS GRANTED AND THE DEPARTMENT OF CANCELLATION OF 21 THAT TAX CREDIT, INCLUDING THE AMOUNT OF THE TAX CREDIT 22 CANCELED. THE COMMERCIAL APPLICANT SHALL PAY THE AMOUNT OF THE 23 CANCELED TAX CREDIT ON THE APPLICATION NOTICE TO THE DEPARTMENT 24 WITHIN 30 DAYS OF THE DATE OF THE CANCELLATION NOTICE. 25 (C) APPEALS.-- 26 (1) A PARTY AGGRIEVED BY THE CANCELLATION OF A TAX 27 CREDIT CERTIFICATE MAY APPEAL THE CANCELLATION TO THE 28 DEPARTMENT OF COMMUNITY AND ECONOMIC DEVELOPMENT. 29 (2) THE APPEAL MUST BE MADE WITHIN 30 DAYS OF THE DATE 30 OF THE CANCELLATION NOTICE. 20070H0221B4000 - 16 -
1 (3) THE APPEAL IS SUBJECT TO:
2 (I) 2 PA.C.S. CH. 5 SUBCH. A (RELATING TO PRACTICE
3 AND PROCEDURE OF COMMONWEALTH AGENCIES), 1 PA. CODE PT.
4 II (RELATING TO GENERAL RULES OF ADMINISTRATIVE PRACTICE
5 AND PROCEDURE) AND PROCEDURAL REGULATIONS PROMULGATED BY
6 THE DEPARTMENT OF COMMUNITY AND ECONOMIC DEVELOPMENT; AND
7 (II) 2 PA.C.S. CH. 7 SUBCH. A (RELATING TO JUDICIAL
8 REVIEW OF COMMONWEALTH AGENCY ACTION).
9 SECTION 507. ADMINISTRATION.
10 THE DEPARTMENT OF COMMUNITY AND ECONOMIC DEVELOPMENT AND THE
11 DEPARTMENT SHALL JOINTLY DEVELOP GUIDELINES FOR THE
12 IMPLEMENTATION OF THE PROGRAM ESTABLISHED IN THIS CHAPTER.
13 Section 20 3101. Effective date. <--
14 This act shall take effect in 120 days.
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